The prime minister has described a Norfolk facility as the "hidden hero" of the UK energy sector, raising hopes that it could become a centrepiece of the shift to cleaner fuels.
Rishi Sunak praised the national contribution made by Bacton Gas Terminal during a visit to the site on Monday.
He said it could help create new jobs and skills in the county as the UK moves away from fossil fuels.
His comments will encourage those in the energy sector who hope Bacton could become a hub for the emerging hydrogen industry, which uses natural gas but is considered cleaner.
Mr Sunak was visiting the north Norfolk facility following an announcement on drilling licences for the North Sea.
The move will see new oil and gas licences awarded annually. The government claims it will provide job security for 200,000 workers across the UK, but the opposition claimed it would simply “hand billions of taxpayer subsidies” to oil and gas giants.
Bacton currently processes a third of the UK’s natural gas and allows it to be imported and exported to the continent.
As the country moves towards net zero carbon emission targets, there have been fears that the facility will become redundant.
But leading figures in the industry, as well as local politicians including the MP, Duncan Baker, have outlined plans for it to have a new role as a hydrogen hub.
BACTON: THE FUTURE
Mr Sunak said this was a realistic prospect.
“I think there is an enormous potential for Bacton to become an energy hub for the UK," he added.
“It's already the hidden hero of our energy sector, given how important it is to keeping the lights on in our country.
“I've been speaking to the team about the exciting opportunities, particularly in hydrogen and I think that's exciting because it means new jobs and new skills for local people.”
Under the plans, Bacton would be used the production and distribution of hydrogen as well as a centre for 'carbon capture', a technology for storing harmful CO2 emissions.
If the scheme goes ahead, it would further cement Norfolk's place at the heart of the renewable energy revolution. The county's waters are already home to some of the world's biggest wind farms, with electricity brought ashore here.
Mr Sunak said the skills currently used by workers in the offshore industry are transferable with future industries like hydrogen production and carbon capture.
He added: “I think this site can play a starring role in our energy needs for years, if not decades to come.”
THE JOURNEY TO NET ZERO
Duncan Baker joined Mr Sunak on his visit to Bacton Gas Terminal.
The MP has been a key voice in the push for the site to become a hub for hydrogen, having set up a meeting with industry and council representatives in Parliament earlier this year.
He said: “This is great news.
“I've been talking for months and months now about its need to become a hydrogen hub for the future. I want to be able to see it play a critical role in energy transition.
“But as we do that over a 25 year period, it will clearly also still be very important for gas.
“This is about recognising how important Bacton is in the east of England and I think by getting the prime minister here today and the officials from Number 10, they can see just what a role it could play.”
BACTON BACKGROUND
The gas complex sits on the coast, just metres from the beach, on a site roughly 180 acres in size – around 120 football pitches.
It opened in 1968, to handle the gas which was starting to be extracted from the North Sea in increasing volumes.
Ever since, it has played a vital role not just in supplying the UK but also Europe, as the only two pipelines connecting Britain to the continent come ashore at the site.
Since the invasion of Ukraine, it has played an increasingly pivotal role in providing energy security for European countries, sending record amounts of gas across the North Sea to make up for reduced Russian supplies.
Last winter, about 20.5 trillion cubic meters of gas were piped over to Europe, four times the typical volume, accounting for about a fifth of the continent’s gas stocks.
HYDROGEN HOPES
Experts believe hydrogen energy could be increasingly used as an alternative to other fossil fuels, as it does not give off CO2 when it burns. It can be made from water, using electrolysis, or from natural gas.
National Gas, which owns and operates the national network, believes Bacton is “exceptionally well placed” to become a future site for hydrogen production, because of its connections to existing natural gas sources.
HOW GREEN IS IT?
Initially, Bacton is expected to generate hydrogen using North Sea natural gas - a product branded 'blue hydrogen'.
The process produces CO2, but this can be 'captured' and stored underground, to prevent harmful emissions.
The technology is not without its critics.
Some environmental groups argue that this type of energy is still harmful to the environment and that the move should be toward 'green hydrogen', which is made by splitting water using electricity from renewable sources.
HOW WOULD NORFOLK BENEFIT?
The government has estimated that by 2030 there could 12,000 jobs in hydrogen and a further 50,000 in carbon capture and storage.
WILL NEW LICENCES SAVE FAMILIES MONEY?
Mr Sunak described the new licence scheme as “right type of long-term decisions” that will change the country for the better and “save families money”.
But energy secretary Claire Coutinho admitted earlier today that the plans may “not necessarily” bring down bills.
She said the money raised could help fund public services and the transition into other forms of energy.
Labour’s Ed Miliband has called her comments a “stunning admission”.
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